The 2019 Ram 1500 Level pickup truck is displayed at the North American International Auto Show in Detroit on January 15, 2018.
Brendan McDermid | Reuters
Detroit – Automobile Manufacturers Stellantis Ford plans to indefinitely lay off up to 2,450 U.S. factory workers later this year as it halts production of the older version of the Ram 1500 pickup truck in Michigan.
The truck has been used primarily as a low-cost pickup aimed at entry-level buyers and fleet customers since the automaker introduced the new-generation Ram 1500 in 2018. It is built alongside the Jeep Wagoneer and Grand Wagoneer at the Warren Truck Assembly Plant near Detroit.
The current Ram 1500, recently updated for the 2025 model year, is produced at a nearby plant, where operations will continue as planned.
“With the introduction of the new Ram 1500, production of the Ram 1500 Classic at our Warren, Mich., Truck Assembly Plant will end at the end of the year,” the company said in an emailed statement.
The discontinuation of the Ram 1500 “Classic” vehicle is not unexpected, but the company has not announced a replacement for the truck, which is a concern for the United Auto Workers union, which represents local governments, workers and the plant.
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Ram CEO Chris Puel told CNBC last week that the “Classic” version of the pickup truck will be phased out by the end of the year.
UAW President Sean Payne has criticized Stellantis’ leadership over the cuts.
“Stellantis CEO Carlos Tavares is a disgrace and an embarrassment to a once great American company,” Fain said in an emailed statement Friday night. “Meanwhile, Tavares has raised his own pay by 56% while laying off thousands of auto workers. If auto workers had done as poorly as Stellantis CEO Carlos Tavares, they would have been fired.”
The layoffs are expected to begin as early as October. The final number of indefinite layoffs at the Warren plant, which currently employs about 3,700 hourly workers, could be lower than the number announced. Some employees may be offered other jobs or positions at other plants.
The layoffs are the latest in a series of cuts in production at several plants by Stellantis as sales struggles and cost-cutting measures weigh on the company.
Tavares has been on a cost-cutting mission since the company was formed in January 2021 from the merger of Fiat Chrysler and France’s PSA Group. It’s part of his “Dare Forward 2030” plan to boost profits and double sales to 300 billion euros ($325 billion) by 2030.
The automaker last week offered a broad voluntary buyout to its U.S. salaried workers as part of an effort to reduce headcount and costs. Stellantis, which reported disappointing first-half results last month, said involuntary layoffs could follow if enough employees don’t participate in the buyout.
